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US: Rite Aid cuts 2019 forecast with buyout vote looming

By  |  August 6, 2018

Rite Aid is chopping its annual earnings forecast three days before its shareholders vote on whether to approve the sale of the company, reported Bloomberg. Grocery store chain Albertsons announced in February a plan to buy Rite Aid’s more than 2,500 drugstores. The grocer offered either a share of its stock and US$1.83 in cash or slightly more than one Albertsons share for every 10 Rite Aid shares.

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    Shares of the nation’s third-largest drugstore chain tumbled 10% Monday, August 6, after the company said generic drug pricing isn’t shaping up how it expected in April when it first made its fiscal 2019 forecast. It had reaffirmed that forecast as recently as late June.

    The company now expects a range of break-even to an adjusted loss of ¢4 per share. It had predicted earnings of ¢2 to ¢6 per share.

    Full Content: Bloomberg

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